With Respect to the Statement of Cash Flows

question 119

Multiple Choice

With respect to the statement of cash flows:

• A)increasing assets is always the predominant use of cash while borrowing is the predominant source of cash.
• B)increases in assets are sources of cash and increases in liabilities are uses.
• C)its most important function is to identify the principal sources and uses of cash.
• D)All of the above

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Definitions:

General Journal

The primary accounting record used to record all transactions in chronological order, including both debit and credit accounts.

Work Sheet

An internal document used by accountants to compile and analyze the accounts before preparing financial statements.

Adjustments

Modifications made to the accounting records or financial statements to accurately represent the financial position of an organization.

Journal

A record where all financial transactions are initially noted before being transferred to specific accounts in the ledger.